Microcredit has been a disaster for the poorest in South Africa

Tuesday, November 19, 2013

After apartheid ended in South Africa in 1994, the international development community quickly arrived with plans to promote the microcredit model. Proclaiming that it would rapidly bring new jobs, incomes, empowerment and dignity to the poorest black communities and townships, expectations of rapid progress ran high.

However, the microcredit medicine applied to post-apartheid South Africa has turned out to be a deadly one. It is now increasingly clear that the much-lauded market-driven microcredit model has inflicted untold damage on the South African economy and society. Concerned investors are rapidly leaving the bloated microcredit sector, with many users arguing that it is on the verge of a self-orchestrated collapse.

Not only does our e-newsletter highlight NextBillion's top articles, jobs and events, we also offer regular ticket giveaways to some of the key conferences in social impact – we've given away over $20,000 in tickets so far. Subscribe today!

No Thanks

Thank you for signing up to receive the NextBillion Notes newsletter.

We respect your privacy. Your information is safe and will never be shared.